Energy Vol. 12. No. 7. pp. 555-562, 1987 0360-5442/87 $3.00 + 0.00 Printed in Great Britain Pergamon Journals Ltd zyxwvutsrqp ENERGY USE IN THE U.S. SERVICE SECTOR: AN INPUT-OUTPUT ANALYSIS JOHN M. GOWDY Rensselaer Polytechnic Institute, Troy, NY 12018, USA JACK L. MILLER State University of New York at Oswego, Oswego, NY 13126, U.S.A zyxwvutsrqponmlkjihgfedcbaZ (Receiced 27 August 1986) zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPO Abstract-The U.S. input-output tables for 1972 and 1977 are used to examine the early adjustment of the service sector to the energy price shock of 1973-1974. IO analysis allows us to look at the indirect as well as direct changes in energy use intensity. We find a substantial decline in both primary and secondary energy intensity between 1972 and 1977 in the service sector. If 1977 energy technology, represented by the 1977 energy IO coefficients, had been used in 1972, the 19 service industry sectors would have required 23% less primary energy and 12% less secondary energy. Electricity use, on the other hand, would have increased by about 9%. 1. INTRODUCTION One of the rare areas of concensus among economists is that the service sector of the economy will play an increasingly dominant role in the future. A growing number of observers also express the conviction that a revolution in information technology, a term which includes computer based technologies ranging from office automation to robotics, will propel the economy into a new period of sustained growth. A corollary to this argument is the view that these new technologies will so improve energy efficiency that economic growth will be largely uncoupled from growth in energy use.’ With respect to energy use in the service sector, two major claims are made by the information technology group. First, it is asserted that the service sector will become less energy intensive and, secondly, that the new information technology will increase the demand for higher quality forms of energy, especially electricity. While it is undeniable that improvements in energy efficiency have been made, claims that economic growth is being uncoupled from the non-renewable resource base are questionable. The figures in Table 1 show that, since 1978, total GNP has increased while Table 1. U.S. energy use, GNP, and productivity (196C-1983)t Parameter 1960 GNP per capita GNP Energy Use Productivity Enercp’GNF ‘The GNP is given 737 4080 44 65 60 in millions of 1972 $. energy use in 10’5 Btus, the Year 1983 1535 6573 74 104 48 Annual Growth Rate ;o-73 73-78 4.2 2.8 2.9 1.8 4.1 0.9 2.9 1.2 0 -1.8 productivity IS indexed to 1977 = 100, the energy/GNP ratio is in the units of 106 Btu& EGI 1*:7-c 555